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Qantas Plans Budget Carrier
To Compete With Virgin Blue

By

Lilly Vitorovich Dow Jones Newswires

Updated Oct. 16, 2003 9:47 a.m. ET

ADELAIDE, Australia -- Qantas Airways on Thursday confirmed it will launch a domestic budget airline in May amid increasing competition from Virgin Blue, which is putting the final touches on its 1.4 billion Australian dollar (US$963.6 million) share offer.

Qantas Chief Executive Geoff Dixon said the flag carrier is in talks with Boeing Co., Airbus and aircraft lessors about buying an unspecified number of 737-800 or A320 planes for...